Public Disclosure Authorized
Public Disclosure Copy
The World Bank
Implementation Status & Results Report
Mongolia Mining Sector Technical Assistance Project (P108768)
Mongolia Mining Sector Technical Assistance Project (P108768) EAST ASIA AND PACIFIC | Mongolia | Energy and Mining Global Practice | IBRD/IDA | Technical Assistance Loan | FY 2008 | Seq No: 8 | ARCHIVED on 01-Jun-2015 | ISR18635 |
Public Disclosure Authorized
Implementing Agencies:
Key Dates Key Project Dates Board Approval date:26-Jun-2008
Effectiveness Date:04-May-2009
Planned Mid Term Review Date:15-Jul-2010
Actual Mid-Term Review Date:01-Nov-2011
Original Closing Date:31-Dec-2012
Revised Closing Date:31-Dec-2015
Public Disclosure Authorized
Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective (PDO) for this first phase of support is to assist the Government to develop further the policy,fiscal, legal, regulatory and institutional framework for the mining and extractive sector that meets the needs of government,industry, and civil society. This includes the operation of Erdenes MGL LLC according to good international practice associatedwith a commercial entity.
Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes
Board Approved Revised Project Development Objective (If project is formally restructured)PHRPDODEL The Project’s objective is to establish key pieces of the policy, fiscal, legal, regulatory and institutional framework for the mining and extractive sector that meets the needs of the public sector, industry, and civil society.
Public Disclosure Authorized
Components Name Strengthening capacity to manage mining revenues:(Cost $4.10 M) Improving regulatory capacity to manage mining sector development:(Cost $3.00 M) Development of capacity to manage State Equity:(Cost $1.40 M) Project Management:(Cost $0.80 M)
Overall Ratings Name
Previous Rating
Current Rating
Progress towards achievement of PDO
Moderately Satisfactory
Moderately Satisfactory
Overall Implementation Progress (IP)
Moderately Satisfactory
Moderately Satisfactory
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The World Bank
Implementation Status & Results Report
Mongolia Mining Sector Technical Assistance Project (P108768)
--
Overall Risk Rating
Substantial
Implementation Status and Key Decisions All activities financed by MSISTAP are complete and the project is fully disbursed. Progress towards achieving the PDO and Overall Implementation Progress continue to be rated as Moderately Satisfactory. Project Closing Date Extension. World Bank Management and the Recipient agreed to extend the closing date of the project from March 31, 2015 to December 31, 2015. In the restructuring of MSISTAP in January 2014 the Bank and the Client committed to delivery three safeguards-related activities: (i) A Resettlement Remedial Action Plan and Resettlement Policy Framework for the Erdenes Tavan Talgoi Mine; (ii) A Review of the Erdenes Tavan Tolgoi Environmental and Social Management System; (iii) A Cumulative Impacts Assessment (CIA) of the Tavan Tolgoi Coal Mine Region. The first and second activities were delivered and financed by MSISTAP. The CIA will be financed by the Mining Infrastructure Investment Support (MINIS) Project, P118109 as all MSISTAP funds were fully committed to other activities. The CIA will be completed by the end of calendar year 2015. No further activities will be financed by MSISTAP during this period. MSISTAP Completion Workshop. A workshop to showcase the achievements of MSISTAP and obtain feedback from stakeholders on the project, was delivered in March. The event featured the feedback of direct project beneficiaries and the views of a panel drawn from outside of the project and members of the audience on wider issues in mining sector development that might inform future engagement between the Government and the World Bank. ICR. The MSISTAP ICR was launched during the February/March supervision mission to collect relevant information and begin to assess project performance ahead of planned closure. The MSISTAP PIU published a report on MSISTAP activities which can be found at www.MSISTAP.gov.mn entitled: REVIEW OF ACTIVITIES FINANCED AND THEIR CONTRIBUTION TO PROJECT OBJECTIVES. A Project Closing Workshop Report is also available at the site. The four project components are rated as follows: i) Strengthening capacity to manage mining revenues: SATISFACTORY ii) Improving regulatory capacity to manage mining sector development: MODERATELY SATISFACTORY iii) Development of capacity to manage state equity: MODERATELY SATISFACTORY iv) Project management: SATISFACTORY
Risks Systematic Operations Risk-rating Tool Risk Category
Rating at Approval
Previous Rating
Current Rating
Political and Governance
--
--
Substantial
Macroeconomic
--
--
Moderate
Sector Strategies and Policies
--
--
Substantial
Technical Design of Project or Program
--
--
Moderate
Institutional Capacity for Implementation and Sustainability
--
--
Moderate
Fiduciary
--
--
Moderate
Environment and Social
--
--
Substantial
Stakeholders
--
--
Substantial
Other
--
--
--
Overall
--
--
Substantial
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The World Bank
Implementation Status & Results Report
Mongolia Mining Sector Technical Assistance Project (P108768)
Results Project Development Objective Indicators PHINDPDOTBL
Annual Budget decisions to replenish or withdraw from newly established Sovereign Wealth Fund are made based on agreed Macroeconomic criteria (Text, Custom)
Baseline
Actual (Previous)
Actual (Current)
End Target
Value
None
Fiscal Stabiltiy Law adopted in 2010 (went into force in Jan 2013) regulates deposits into and withdrawals from the Fiscal Stabilization Fund and sets fiscal rules.
Fully Achieved. Fiscal Stabiltiy Law adopted in 2010 (went into force in Jan 2013) regulates deposits into and withdrawals from the Fiscal Stabilization Fund and sets fiscal rules.
Criteria agreed and implemented in Budget framework for 2012 Budget
Date
26-Jun-2009
15-Oct-2014
14-May-2015
31-Dec-2013
PHINDPDOTBL
Level of mining related transfers from national government to Aimag and Soum authorities is known and publicly disclosed. (Text, Custom)
Baseline
Actual (Previous)
Actual (Current)
End Target
Value
Not currently disclosed
Integrated Budget Law of Dec 2011 addresses financial flows to and uses of funds at subnational level.
Fully achieved. Integrated Budget Law of Dec 2011 addresses financial flows to and uses of funds at subnational level.
Disclosed and discussed/moni tored by citizen groups/civil society
Date
26-Jun-2009
15-Oct-2014
14-May-2015
31-Dec-2013
PHINDPDOTBL
Mining Tax Audits are completed and assessments raised (Text, Custom) Baseline
Actual (Previous)
Actual (Current)
End Target
Value
none currently
2 audits completed; guidelines and manuals for auditors adopted in 2014
Fully Achieved. 2 audits completed; guidelines and manuals for auditors adopted in 2014
Minimum of two audits completed
Date
26-Jun-2009
15-Oct-2014
14-May-2015
31-Mar-2015
PHINDPDOTBL
Clear authority and responsibilities for Government mining sector management institutions, especially regarding environmental and social aspects associated with mining activities. (Text, Custom)
Baseline
6/1/2015
Actual (Previous)
Public Disclosure Copy
Actual (Current)
End Target
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The World Bank
Implementation Status & Results Report
Mongolia Mining Sector Technical Assistance Project (P108768)
Value
Roles confused resulting in gaps and conflicts
Functional management review of MoM completed in 2013 and recommendations on clarifications of roles and authorities provided and accepted by MoM. SESA completed in 2014 and clarifies roles on env/social side. Mining Law revised in July 2014
Date
26-Jun-2009
15-Oct-2014
Fully Achieved. Functional management review of MoM completed in 2013 and recommendations on clarifications of roles and authorities provided and accepted by MoM. SESA completed in 2014 and clarifies roles on env/social side. Mining Law revised in July 2014
Institutional roles clarified in line with clearly stated regulations.
14-May-2015
31-Mar-2015
PHINDPDOTBL
mineral licensing procedures streamlined and processing times reduced (Text, Custom) Baseline
Actual (Previous)
Actual (Current)
End Target
Value
4-6 months
Revised Mining Law adopted July 2014 and the ban on issuing new licenses which was in place since 2010 is being lifted. Time for processing will be verified before project closure based on actual records
Fully Achieved. Mineral Licencing processing is completed within 1 month.
2 months
Date
26-Jun-2009
15-Oct-2014
14-May-2015
31-Mar-2015
PHINDPDOTBL
Geological information is digitized and published and readily available in user friendly digital formats. (Text, Custom) Baseline
Value
6/1/2015
very limited, no digital geochemistry
Actual (Previous)
Actual (Current)
End Target
Willl not be met
Target not met. MSISTAP financed an institutional functional review of mining-related regulatory agencies (completed 2013). Its recommendations included establishment of an independent national geological survey to serve the public interest in knowledge and excellence in the geosciences and the employment of geo-data
200,000 data points digitised
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The World Bank
Implementation Status & Results Report
Mongolia Mining Sector Technical Assistance Project (P108768)
to support planning and management of natural resource use, including minerals and hydrocarbons. The Ministry of Mining is prioritizing this reform and seeks support to implement it on the basis of a clear institutional mandate, strategy and institutional capacity development. Date
26-Jun-2009
15-Oct-2014
14-May-2015
31-Mar-2015
PHINDPDOTBL
Companies and civil society participate in consultation for pieces of legislation and regulation for mining sector through public fora arranged by the government. (Text, Custom)
Baseline
Actual (Previous)
Actual (Current)
End Target
Value
No data availabe.
Companies and Civil society participate in consultation, including proven involvement in consultation on the Mining Law revisions, new Transparancy Law and various regulations issues for environmental law in 2013.
Fully achieved. Companies and Civil society participate in consultation, including proven involvement in consultation on the Mining Law revisions, new Transparancy Law and various regulations issues for environmental law in 2013.
Consultations taking place for policy, each piece of legislation and regulation.
Date
28-Mar-2014
15-Oct-2014
14-May-2015
31-Mar-2015
Overall Comments
Intermediate Results Indicators PHINDIRITBL
Sovereign Wealth Fund or alternative revenue stabilisation mechanism established (Text, Custom) Baseline
Actual (Previous)
Actual (Current)
End Target
Value
Mongolian Development Fund in place but deficient without defined operating criteria
Soverign Wealth Fund established in 2013 when the Fiscal Stability Law went into force.
Fully Achieved. Soverign Wealth Fund established in 2013 when the Fiscal Stability Law went into force.
New Fund Operational
Date
26-Jun-2009
15-Oct-2014
14-May-2015
31-Mar-2015
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The World Bank
Implementation Status & Results Report
Mongolia Mining Sector Technical Assistance Project (P108768)
PHINDIRITBL
Support establishment of mechanisms for preparation and dissemination of independent professional mining sector economic and policyreports. (Text, Custom)
Baseline
Actual (Previous)
Actual (Current)
End Target
Value
No policy unit serving Prime Minister
Several reports produced by a research institution and published on economics and mining policy; conferences organized to discuss reports.
Fully Achieved. Several reports produced by a research institution and published on economics and mining policy; conferences organized to discuss reports.
Produce first report
Date
26-Jun-2009
15-Oct-2014
14-May-2015
31-Mar-2015
PHINDIRITBL
Modern Mining cadastre regulation adopted and promulgated (Text, Custom) Baseline
Actual (Previous)
Actual (Current)
End Target
Value
Regulations under preparation
Mining law revised in July 2014 which specify provisions for tendering and first come first served approach on licensing; new regulations due before November 2014.
Fully Achieved. Mining law revised in July 2014 which specify provisions for tendering and first come first served approach on licensing..
Mining Cadastre is in use and has public access and tendering
Date
26-Jun-2009
15-Oct-2014
14-May-2015
31-Mar-2015
PHINDIRITBL
Preparation of Draft Model Mineral Development Agreement (Text, Custom) Baseline
Actual (Previous)
Actual (Current)
End Target
Value
First draft prepared
Production Sharing Agreement drafted and under consultation. Model Mining Agreement and Model Community Devt Agreement will be prepared in 2015. Provisions for the model agreements in place in the revised Mining Law 2014 and Petroleum Law
Partially Achieved. Production Sharing Agreement drafted and under consultation. Model Mining Agreement and Model Community Devt Agreement will be completed in mid-2015.
Draft Model PSA and Mining Agreements consistent with International best practice adopted and utilised
Date
26-Jun-2009
15-Oct-2014
14-May-2015
31-Dec-2013
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The World Bank
Implementation Status & Results Report
Mongolia Mining Sector Technical Assistance Project (P108768)
PHINDIRITBL
Income tax laws on mining amended and supporting regulations drafted (Text, Custom) Baseline
Actual (Previous)
Actual (Current)
End Target
Value
Income tax law for mining deficient
Achieved - Windfall profit tax law of 2006 revised in 2010; Investment code revised in 2013 changes in force from 2014.
Fully Achieved - Windfall profit tax law of 2006 revised in 2010; Investment code revised in 2013 - changes in force from 2014.
Final modifications to tax laws submitted to Parliament for consideration.
Date
26-Jun-2009
15-Oct-2014
14-May-2015
31-Mar-2015
Actual (Current)
End Target
PHINDIRITBL
Options study prepared on double taxation treaties (Text, Custom) Baseline
Actual (Previous)
Value
Treaties exist but Government dissatisfied with operations
Achieved
Fully Achieved
Work completed on double taxation treaties – Government satisfied with current position on double taxation treaties.
Date
26-Jun-2009
15-Oct-2014
14-May-2015
31-Dec-2013
PHINDIRITBL
GDNT tax audit staff trained and competent to carry out mining company tax audits (Text, Custom) Baseline
Actual (Previous)
Actual (Current)
End Target
Value
no staff trained to international standards
Achieved; tax audit department received multiple support and study tours (all relevant staff participated exceeds target)
Fully Achieved; tax audit department received multiple support and study tours (all relevant staff participated exceeds target)
10 staff trained of which 2 are leading mining tax audits
Date
26-Jun-2009
15-Oct-2014
14-May-2015
31-Mar-2015
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The World Bank
Implementation Status & Results Report
Mongolia Mining Sector Technical Assistance Project (P108768)
PHINDIRITBL
Ministry of Mining policies reviewed and revised (Text, Custom) Baseline
Actual (Previous)
Actual (Current)
End Target
Value
Some work has been undertaken to review the Ministry’s strategic communications plan. MSISTAP has also funded advice on how to bestdevelop the mining industry, including opportunities for downstream processing in Mongolia.
New Mineral Policy formally adopted/ passed by Cabinet in January 2014
Fully Achieved. New Mineral Policy formally adopted/ passed by Cabinet in January 2014
Government adopts recommendatio ns in the form of policy statements.
Date
28-Mar-2014
15-Oct-2014
14-May-2015
31-Mar-2015
PHINDIRITBL
Modern company reporting requirements regulations are prepared, promulgated, implemented, and monitored (Text, Custom) Baseline
Actual (Previous)
Actual (Current)
End Target
Value
Reporting exists in regulations but needs modifications and follow up
Almost achieved Mining law updated in July 2014 and includes reporting requirements
Almost achieved -Mining law updated in July 2014 and includes reporting requirements
regulations issues and passed
Date
28-Mar-2014
15-Oct-2014
14-May-2015
31-Mar-2015
PHINDIRITBL
Modern occupation, health and safety regulations are prepared, promulgated, implemented and monitored. (Text, Custom) Baseline
Actual (Previous)
Actual (Current)
End Target
Value
Regulations exist but require update and modernization
Mining law adopted, regulations to be updated according to the new law
Partially Achieved. Mining law adopted, regulations to be updated according to the new law.
Legislation passed, authorities actively monitoring health and safety practices based on new regulations.
Date
28-Mar-2014
15-Oct-2014
14-May-2015
31-Mar-2015
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The World Bank
Implementation Status & Results Report
Mongolia Mining Sector Technical Assistance Project (P108768)
PHINDIRITBL
Strategic environmental & social assessment undertaken, areas for improvement in social (including gender) & environmental regulation identified, recommendations made for updating laws (Text, Custom)
Baseline
Actual (Previous)
Actual (Current)
End Target
Value
Limited
SESA completed in Fall 2014, Almost achieved -- SESA submitted for ministerial approval by MoM and MoEGD.
Fully Achieved. SESA completed in December, 2014.
Results presented, Government responding to key findings
Date
28-Mar-2014
15-Oct-2014
14-May-2015
31-Mar-2015
PHINDIRITBL
Consultation with a range of stakeholders including civil society, community members and the private sector undertaken as part of asocial and environmental strategic assessment process. (Text, Custom)
Baseline
Actual (Previous)
Actual (Current)
End Target
Value
Limited
Achieved
Fully Achieved.
SESA Consultation process completed. Working local engagement tools (models) evolved
Date
28-Mar-2014
15-Oct-2014
14-May-2015
31-Mar-2015
PHINDIRITBL
Modern mine closure and post closure regulations are prepared and promulgated (Text, Custom) Baseline
Actual (Previous)
Actual (Current)
End Target
Value
law and regulations require closure planning but no specific regulation
Partially achieved -- TA provided (jointly with BGR)
Partially achieved -- TA provided (jointly with BGR)
Modern mine closure and post closure regulations are prepared and promulgated
Date
28-Mar-2014
15-Oct-2014
14-May-2015
31-Mar-2015
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The World Bank
Implementation Status & Results Report
Mongolia Mining Sector Technical Assistance Project (P108768)
PHINDIRITBL
Erdenes MGL financial reports are provided quarterly to the Board of Directors. (Text, Custom) Baseline
Actual (Previous)
Actual (Current)
End Target
Value
not systemic reporting
Achieved
Fully Achieved
Financial reports are provided quarterly to the Board of Directors.
Date
28-Mar-2014
15-Oct-2014
14-May-2015
31-Mar-2015
PHINDIRITBL
Establishment of appropriate legal structure and preparation and adoption of suitable corporate charter and reporting arrangements for Erdenes MGL (Text, Custom)
Baseline
Actual (Previous)
Actual (Current)
End Target
Value
EMGL was established in 2007
Achieved in 2010
Achieved in 2010
Appropriate legal structure and preparation and adoption of suitable corporate charter and reporting arrangements in place.
Date
28-Mar-2014
15-Oct-2014
14-May-2015
31-Mar-2015
PHINDIRITBL
Provision of management-related and governance related training events to build capabilities needed within Erdenes MGL. (Text, Custom)
Baseline
Actual (Previous)
Actual (Current)
End Target
Value
no systemic capacity building
Achieved
Achieved
Managementrelated and governance related training event provided
Date
28-Mar-2014
15-Oct-2014
14-May-2015
31-Mar-2015
Overall Comments
Data on Financial Performance Disbursements (by loan)
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The World Bank
Implementation Status & Results Report
Mongolia Mining Sector Technical Assistance Project (P108768)
Project
Loan/Credit/TF
Status
Currency
Original
Revised
Cancelled
Disbursed
Undisbursed
Disbursed
P108768
IDA-44890
Effective
XDR
3.15
3.15
0.00
3.13
0.02
99%
P108768
IDA-H4110
Effective
XDR
2.57
2.57
0.00
2.57
0.00
100%
Key Dates (by loan) Project
Loan/Credit/TF
Status
Approval Date
Signing Date
Effectiveness Date
Orig. Closing Date
Rev. Closing Date
P108768
IDA-44890
Effective
26-Jun-2008
07-Oct-2008
04-May-2009
31-Dec-2012
31-Dec-2015
P108768
IDA-H4110
Effective
26-Jun-2008
07-Oct-2008
04-May-2009
31-Dec-2012
31-Dec-2015
Cumulative Disbursements
Restructuring History Level Approved on 05-Jul-2012 ,Level 1 Approved on 10-Jan-2014 ,Level 2 Approved on 31-Mar-2015
Related Project(s)
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The World Bank
Implementation Status & Results Report
Mongolia Mining Sector Technical Assistance Project (P108768)
There are no related projects.
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